AmBank's MD Ashok to step down

AMMB Holdings group managing director Ashok Ramamurthy (Left) and chief financial officer Mandy Simpson (Right) - LOW LAY PHON/THE STAR (filepic)

PETALING JAYA: AMMB Holdings Bhd (AmBank Group), which has been reported to be going through a change at the helm of its management, said that group managing director (MD) Ashok Ramamurthy (pic) would be stepping down as part of a planned transition at the banking group.

AmBank Group, in a filing with Bursa Malaysia yesterday, said that it had also started the process of identifying a replacement for the top position. The bank said that Ashok, an Australian national, would be stepping down in due course to rejoin his family in Melbourne.

“This is part of a planned transition that will see him resume his career in a senior executive role at Australia and New Zealand Banking Group Ltd (ANZ),” AmBank Group said.

Representatives from ANZ, which is the largest shareholder of AmBank Group with 23.7%, hold several key positions in the banking group.

However, the position of group MD is considered a “local one” and not necessarily has to be filled by an ANZ representative, according to industry sources.

It has also been reported that several other key people in AmBank Group may opt not to renew their contracts when they come up for renewal. Among them are the MD of Wholesale Banking, Pushpa Rajadurai, its MD for Wholesale Banking Products Kok Tuck Cheong and group chief financial officer (CFO) Mandy Simpson.

AmBank Group clarified that Pushpa, Kok and Simpson had existing contracts and would continue to serve the group in accordance with these contracts as normal.

The 53-year-old Ashok joined AmBank Group from ANZ in 2007 as CFO and has been the group MD since 2012.

Besides Simpson, other positions held by ANZ representatives included Nigel Christopher William Denby, who is the chief risk officer. But it is learnt that the position of chief operations officer, once held by Ross Neil Foden, is vacant.

AmBank Group chairman, Tan Sri Azman Hashim, said that the group had made significant progress under Ashok’s leadership.

“This includes repositioning the AmBank brand internally and externally, upgrading our technology infrastructure and strengthening our strategic position. The group has a very bright future and on behalf of the board, I want to thank Ashok for his contribution over the past eight years,” Azman said.

However, Azman said that Ashok would remain in charge of AmBank Group until a proper transition is made to the new group MD. “Importantly, Ashok’s presence has also deepened the ties between AmBank Group and ANZ, which continues to be a committed, long-term strategic partner for our bank,” he added.

Meanwhile, Ashok said that it had been a great privilege to have served at the helm over the past three years. “Malaysia has been a wonderful place to live and work, and it has been an honour to lead a first-class management team and the group’s 12,000 employees, who are dedicated to supporting our customers.

“It has always been my intention to return to Melbourne to be with my wife and family and to resume my career at ANZ. Although there is still much to do over the coming months, I want to thank the chairman and the board for their continuing support,” Ashok said.

According to its latest annual report, the next largest shareholders in AmBank Group are the Employees Provident Fund with 14.14%, while Azman, who founded the bank, has a 14.01% interest. It is due to announce its third-quarter results next month.

StarBiz had reported yesterday that changes might be in the offing at AmBank Group, with Ashok having expressed his intention not to renew his contract. Among those believed to have considered leaving, the report quoting sources said, were long-serving key personnel Pushpa and Kok.

AmBank shares trended down 4.11% to RM6.30 at the end of yesterday’s trade.

For the first nine months to Sept 30, 2014, AMMB posted a net profit of RM982.7mil, up 8.8% from RM902.8mil. Its revenue for the period rose to RM4.79bil against RM4.76bil.

AmBank’s Ashok to step down